Lufthansa CEO warns jet fuel costs to exceed €2B forecast

Ryanair: Ryanair is a major European low-cost carrier focused on short-haul routes. The airline is cited alongside Lufthansa as one of several carriers highlighting the pressures from elevated jet fuel costs that represent a large share of industry expenses. Lufthansa: Lufthansa is a leading German airline group providing passenger and cargo services across Europe and international routes. Its CEO addressed journalists in Frankfurt regarding how the ongoing Iran conflict and associated oil price increases are driving jet fuel expenses higher than previously anticipated for 2026. The company maintains an extensive hedging program to partially offset fuel price volatility while pursuing its long-term margin targets. Carsten Spohr: Carsten Spohr is the Chief Executive Officer of Lufthansa. He stated at a Frankfurt press event that the airline's additional jet fuel costs for the year will exceed the amount flagged earlier due to the Iran war and oil price spikes, while reaffirming operating profit guidance. Till Streichert: Till Streichert is the Chief Financial Officer of Lufthansa. He provided updates on the group's fuel hedging positions, indicating substantial coverage levels for 2026 and 2027 amid ongoing price volatility. Sector Costs: Jet fuel expenses typically account for 30 to 40 percent of total costs for airlines in the sector. Premium Demand: Airlines including Air France-KLM and IAG have also noted strong bookings in premium economy and business class cabins. Industry Warnings: Multiple European carriers have recently issued alerts on the impact of sustained high jet fuel prices on operations and profitability.